The NSW government is failing to support first home buyers in purchasing a property, according to the Young Agents Chapter of the Real Estate Institute of New South Wales (REINSW).
REINSW Young Agents Chapter chair Eddy Piddington said first home buyers were struggling to raise the deposit required to get onto the property ladder.
“In the case of existing properties, first home buyers must also find the extra funds to pay stamp duty. It’s time for stamp duty to again be taken out of the equation for first home buyers in order to give them the break they need," he said.
“The NSW government’s attempts to help support young people though the extension of the $15,000 First Home Owner Grant (FHOG) on new homes to 1 January 2016 is not working. Many young people are not interested in purchasing new homes because these developments are generally not in the right location and they are largely out of the price range of first home buyers."
While reduced interest rates are having a positive effect, they have not taken away the burden of saving a deposit and paying for stamp duty
“Now is the time for the NSW government to realise [that] the dream of purchasing your first home is pushing the age of first home buyers into their late 20s and early 30s,” Mr Piddington said. “This in turn creates a bottleneck, whereby those who already have homes cannot move onto properties that better respond to their needs.
“First home buyers play a vital role in fuelling the property market and have a much bigger impact than many think. Our first home buyers are frustrated."
Mr Piddington called for the return of first home buyer incentives for existing properties, the abolition of stamp duty and movement in the marketplace.
Last month, REINSW CEO Tim McKibbin told Real Estate Business the NSW government had failed to use its Budget as an opportunity to reinvigorate the property market, which was falling to record lows.
“The percentage of first home buyers in the marketplace is getting very close to the record low of 12.5 per cent seen in March 2004, and is well off the all-time high of 29.5 per cent recorded in May 2009,” he said.